Cathie Wood, CEO of ARK Invest, has publicly walked back her earlier assertion that Binance was responsible for the sharp cryptocurrency market decline on October 10, 2024 (later referred to as the October 2025 flash crash). In a recent clarification, Wood acknowledged that while a software error occurred at the exchange, it did not directly trigger the crash, and she emphasized the importance of accuracy in market narratives.
The original misstatement was made during a January interview on Fox Business, where Wood suggested that a software glitch at Binance was linked to a massive deleveraging event, which she estimated at approximately $28 billion. The claim spread quickly across crypto media and social platforms, fueling speculation that Binance had inadvertently caused the market-wide sell-off. This narrative added to existing scrutiny of the exchange, which has faced regulatory challenges in multiple jurisdictions.
In her correction, Wood stated that the software error was real but not the catalyst for the crash. She expressed a desire for market participants to have a clear and accurate understanding of the event, rather than relying on incomplete or misleading information. Binance founder Changpeng Zhao (CZ) thanked Wood for the clarification, noting that her earlier remarks had been widely shared in Chinese media, where some reports suggested Binance was responsible for the market drop.
The October 10–11, 2025, flash crash saw Bitcoin plummet from its peak near $125,000, with over $19.5 billion in leveraged positions wiped out within 24 hours. Panic followed tariff-related developments involving China, and broader market fragility likely played a larger role than any single exchange error.
Wood’s retraction is significant because she is a widely followed figure in the investment community, and her statements can influence market sentiment. The correction helps dispel a narrative that could have unfairly damaged Binance’s reputation and misled traders about the fragility of crypto infrastructure. It also underscores the importance of accountability and accuracy in financial commentary, particularly in fast-moving markets where incomplete information can exacerbate volatility.
